In the past few months, cross-chain bridge technology has grown significantly and users can now exchange assets between countless networks. Today, a total of $ 7.6 billion is tied up between eight different bridges across these platforms.
Cross chain bridges
There are a decent number of cross-chain blockchain bridges out there these days and it has enabled users to perform a variety of different decentralized financial (defi) techniques. Interestingly, many bridges are connected to the Ethereum (ETH) network because they are compatible with Ethereum Virtual Machine (EVM).
Since these connections were made, a lot of value has flowed between a variety of chains and the Ethereum blockchain. The following post mentions a number of bridges that cryptocurrency participants can use to achieve cross-chain swaps.
Tezos Wrap Protocol Bridge
The Tezos (XTZ) blockchain is a proof-of-stake (PoS) blockchain network that uses validation nodes, often referred to as bakers. XTZ users have the option to connect to the Ethereum blockchain as a team called Bender Labs developed a bridge called the Wrap Protocol.
Essentially, the wrap protocol developed by Bender offers users the option of wrapping ERC20 and ERC721 tokens in order to use them with various defibrillating applications.
Binance Smart Chain Bridge
The Binance Smart Chain (BSC) is another blockchain that is compatible with Ethereum. BSC offers the same smart contract capacity, but the fees in the BSC chain are much cheaper. Binance Chain (BNB) users can switch from the BNB chain to BSC via the BEP20 standard and a cross-chain bridge.
The Binance Wallet is an expansion wallet that can carry out cross-chain swaps from BNB to BSC. In addition, users can use the Binance Bridge to handle cross-chain transactions. US users and a number of other countries may need to use a VPN to access the Binance Bridge.
Solana’s wormhole bridge
Solana (SOL) also has a bridge and the launch of the Wormhole Network’s Ethereum-Solana bridge was announced on September 17th. The Wormhole Token Bridge connects Ethereum and Solana and users can exchange assets across both blockchains.
“The portal is open,” it says on the wormhabenetwork.com website. “Wormhole offers new channels of communication between previously isolated blockchains.” Current wormhole statistics from Dune Analytics show that the Solana wormhole has blocked a total of $ 382,471,804.
Avalanche bridge
Another chain compatible with Ethereum is Avalanche (AVAX), a proof-of-stake (PoS) blockchain. AVAX participants can connect AVAX assets to Ethereum by using the cross-chain functions of the Avalanche wallet.
Users of this wallet can exchange their AVAX between the Avalanche network and the Ethereum network for a small fee. After a cross-chain swap is completed on the Ethereum chain, participants can send the funds to a wallet like Metamask as long as they configure Metamask for the Avalanche network.
Bitcoin Cash Smartbch Bridge
Bitcoin Cash (BCH) is another chain that is now compatible with Ethereum via the Smartbch network. This means that Bitcoin Cash (BCH) can be packaged and used for decentralized funding purposes. There is currently only one Smartbch bridge operated by the Coinflex crypto asset exchange.
Users can access Coinflex through Metamask instead of registering with an email, and users can swap their BCH for Smartbch almost immediately after confirmation times. Essentially, a user simply deposits BCH and sends out Smartbch using the SEP20 token protocol standard when making the withdrawal. From here, after a Metamask wallet has been configured for the Smartbch network, Metamask users can use packaged Bitcoin cash.
Research guides on using bridges before you cross them
The above list only scratches the surface when it comes to cross-chain swaps as there are bridges that come from blockchains like Cosmos, Fantom, Polygon, Terra, Harmony, Near, Optimism, and Harmony.
Cosmos users can connect to a Keplr wallet and connect to Ethereum via Emeris. Near participants can work with Ethereum via the NEAR Rainbow Bridge. Fantom users can swap with spookyswap or multichain.xyz and polygon network participants can swap across chains via the Polygon Bridge. Terra assets can be exchanged between Ethereum and Terra via bridge.terra.money.
However, using cross-chain bridges requires some patience and some prior knowledge from walkthrough articles and step-by-step guides on how to use blockchain bridges. Funds can be lost if mistakes are made and users should always do due diligence before accessing cross-chain bridges or decentralized financial (defi) applications in general.
What do you think of the five cross-chain bridges mentioned in this article? Let us know what you think on this matter in the comments below.
Tags in this story
Avalanche, Avalanche Bridge, AVAX, Bear, Binance Chain, Binance Smart Chain, Binance Smart Chain Bridge, Blender, bnb, Bridges, BSC, Cosmos, Cross-Chain, Cross-Chain-Brücke, Dune Analytics, NEAR, Polygon, Smartbch, SOL, Terra, Tezos, Total Locked, TVL, Wormhole, Wrapped BCH, Wrapped Tezos, xtz
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source https://www.bisayanews.com/2021/09/20/cross-chain-bridges-that-connect-5-different-blockchains-to-ethereum-defi-bitcoin-news/
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